Voluntary Life Insurance

What Does Voluntary Life Insurance Mean?

Voluntary life insurance is a workplace benefit that allows employees to purchase life insurance coverage through their employer. This coverage provides a death benefit to the employee’s heirs in the event of the employee’s death. The program is voluntary, as employees have the choice to opt in or out. Since the employer does not cover any of the insurance costs, employees must decide whether the coverage is worth the expense.

Insuranceopedia Explains Voluntary Life Insurance

Voluntary life insurance programs offer several appealing benefits. Many programs allow employees to enroll for a guaranteed minimum amount of coverage without requiring a health exam, while those in good health may qualify for higher coverage limits.

Additionally, many programs provide the option for employees to retain their coverage even after leaving their jobs. Lastly, voluntary life insurance is often offered at a discounted rate compared to standard life insurance, as the insurance company provides group pricing to the employer’s workforce.